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What Happens In A Debt Collection Lawsuit?

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According to, there are seven different ways to defend a debt collection lawsuit. With so many different options to consider, it is normal for you to wonder what to expect.

Two Most Effective Defenses

There are just two defenses that tend to be effective when it comes to debt collection lawsuits. The first will allow the consumer to provide evidence of the debt not belonging to him or her. The second involves a defense that will aid the consumer in reaching a lower settlement price for the debt acquired.

Understanding The Complaint

A petition or complaint is issued by an attorney for the creditor or collection agency who is referred to as the plaintiff. You and anyone who co-signed the account or loan will be the defendant.

The complaint will stipulate why you are being sued and what is included as the reimbursement for the money owed by you and your cosigners. You will also be responsible for interest and, possibly, any court costs or attorney fees.

You will receive the summons as well as a copy of the complaint, which is usually delivered by a local sheriff or process server. The copies can be left with an adult at your business or home if you cannot be located. You will also have a copy mailed to your residence.

You Have to Respond To The Lawsuit

A common mistake made in many cases involves failing to appear or respond to the summons and complaint. Naturally, there isn't much you can do if you do not have the funds to pay the debt. It, however, is in your best interest to still respond to the complaint and appear for any court dates. If possible, bring proof of your financial struggles to show that you are unable to pay off the debt.

Not a lot can be done if you just don't have the funds. However, it is essential and in your best interest to respond to the requests. If you don't respond to the summons, a default judgment can be placed against you. In some states, the judgment can include the creditor's ability for money to be removed from your banking accounts and wage garnishment. The collector can also attach court costs, attorney's fees, or interest on the outstanding balance.

Prepare the Answer and Negotiate

After you have answered the complaint, it is an excellent time to discover whether the plaintiff would like to settle the debt incurred or not. You might find this is one of the simplest routes you can take if the debt belongs to you.

The process for debt collection is usually a basic procedure. However, it is a procedure that should not be ignored. If you don't respond to the request, you will be found guilty and have to pay for the costs of the process as well as the debt with interest. For more information, talk with a bankruptcy attorney, such as those at Jeffrey S Arnold Attorney At Law P.C..